TBO Tek IPO 2024 : The TBO Tek Limited IPO, which commenced on May 8, 2024, is entering its final day of bidding today. This public offering, involving a mix of fresh shares and an Offer For Sale (OFS), marks a significant moment for the company as it seeks to raise funds in the Indian primary market. The price band for the IPO is set between ₹875 to ₹920 per equity share. The company aims to garner ₹400 crore from the issuance of fresh shares, while an additional ₹1,150.81 crore will be raised through the OFS route.
TBO Tek IPO GMP Today
Despite subdued trends on Dalal Street, the grey market premium (GMP) for TBO Tek IPO today stands at ₹550, showing a rise of ₹21 from the previous day’s GMP of ₹529. This increase in GMP underlines the robust sentiment in the grey market, reflecting an optimistic outlook for the company’s shares on their listing day. The favorable response from investors in the primary market has further bolstered this positive sentiment.
TBO Tek IPO Subscription Status
As of 12:30 PM on the third day of bidding, the public issue has been subscribed 11.96 times. The retail segment of the IPO has seen a subscription of 15.30 times, the Non-Institutional Investors (NII) portion 21.70 times, and the Qualified Institutional Buyers (QIB) segment 5.98 times.
TBO Tek IPO Review
BP Equities has endorsed the TBO Tek IPO with a ‘subscribe’ rating, citing several factors. From a valuation perspective, the initial Price-to-Earnings (P/E) ratio at 65x, while high, aligns with industry benchmarks for digital e-commerce platforms. An anticipated P/E ratio of 45x for FY24E suggests a more favorable valuation. The company’s robust growth prospects, profitability, and refined business model boost confidence in its long-term potential. As TBO Tek continues to enhance its digital platform and leverage emerging market opportunities, it is positioned to become a key player in the digital commerce sector.
Prashanth Tapse, Senior VP of Research at Mehta Equities, recommends subscribing to the IPO for those interested in listing gains. He highlights that at the upper price band of ₹920, the company seeks a market capitalization of Rs. 9990 crore, with a P/E ratio of 48.6x based on the annualized FY 2024 earnings and fully diluted post-IPO capital, which appears reasonable given the industry’s growth trajectory. TBO Tek’s innovative platform strategy, effective data utilization, and focus on developing a collaborative ecosystem solidify its standing in the fast-evolving travel and tourism industry.
Furthermore, several other financial firms, including Arihant Capital, Canara Bank Securities, Indsec Securities, Marwadi Shares and Finance, Nirmal Bang, Ventura Securities, and Sushil Finance, have also given a ‘subscribe’ recommendation for the IPO. This consensus among multiple analysts provides potential investors with additional confidence in the IPO’s prospects.
This IPO represents a crucial step for TBO Tek as it seeks to expand its footprint and capitalize on its technological advancements in a competitive market. Investors considering this IPO should review these insights and analyses to make an informed decision regarding their participation.
FAQs
- What is TBO Tek?
TBO Tek is a tech company specializing in travel industry solutions, offering software platforms and digital tools. - Why is TBO Tek going public?
TBO Tek is initiating an IPO to raise capital for expansion and to increase its profile in the market. - How can I invest in TBO Tek IPO?
To invest, monitor announcements from your brokerage, and place orders through your brokerage account once the IPO date is set. - What are the risks?
Risks include market volatility, competition, and regulatory changes, which could affect TBO Tek’s performance post-IPO. - What are the benefits?
Investing in TBO Tek IPO offers potential capital appreciation and liquidity through trading on the stock market, along with opportunities for long-term returns if the company continues to innovate and grow.